C202 Chapter Summary Notes on Managing Human Capital and Key Concepts | Accurate & Verified Answers to Pass Actual Exam

C202 Chapter Summary Notes on Managing Human Capital and Key Concepts | Accurate & Verified

Answers to Pass Actual Exam

C202 Managing Human Capital
From Human Resource Management 2nd Edition, Copyright 2019. Used by arrangement of Chicago Business Press.

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Chapter 1: Strategic Human Resource Management
Learning Objectives:

1. Describe the primary Human Resource Management (HRM) functions.
a. StafÏng
i. process of planning, acquiring, deploying, and retaining employees that enables the
organization to meet its talent needs and execute its business strategy
b. Training and development
c. Performance management
i. aligning individual employees’ goals, ethics, and behaviors with organizational goals and
strategies, appraising and evaluating past and current behaviors and performance
d. Rewards and benefits
e. Health and safety
f. Employee-management relations

2. Explain why HRM is important to organizational performance.
a. By shaping
i. What employees should do
1. Planning
2. Laws and Regulations
ii. What employees can do
1. StafÏng
2. Training
iii. What employees will do
1. Compensation
2. Performance management

3. Explain how HRM strategy supports business strategy.
a. Effective Work Process is created by the above resulting in
i. Strategic execution
ii. Positive work environment
iii. Engaged employees

Concepts:

Business strategy- how the firm will compete in its marketplace.

Types of risk
oStrategic: HRM initiatives can affect business strategy.

, These may include the overall talent strategy, company culture, ethics, investments in
people, and the implementation of change initiatives.
oOperational: These risks can influence an organization’s ability to execute the business strategy
Speed and the effectiveness of talent acquisition as well as the development of
employees’ skills and the identification and retention of top performers
oFinancial: affects the organization’s workforce costs and productivity
Directly through compensation, benefits, turnover, overtime, and time-to-hire and
indirectly through errors, accidents, delays, and lost production.
oCompliance: legal ramifications
diversity, health and safety, union relations, whistleblowers, and harassment. SEC
regulations etc

HRM responsibility / the manager:
oHRM: Designs organizational changes
oManager: Implements HRM design changes into operations
Talent philosophy: A system of beliefs about how its employees should be treated.
othe value placed on diversity;
oethics;
owhether the firm would like employees to stay for a limited time or for their entire careers; and
owhether employees are viewed as assets to be managed or as investors choosing where to
allocate their time and effort.

Human resource strategy- Links the entire human resource function with the firm’s business strategy.
Employee handbook- Print or online materials that document the organization’s HRM policies and
procedures
Direct financial compensation- Compensation received in the form of salary, wages, commissions, stock
options, or bonuses
Indirect financial compensation- (benefits): Any and all financial rewards not considered direct financial
compensation, including health insurance, wellness benefits, paid vacations, and free meals
Nonfinancial compensation- Rewards and incentives given to employees that are not financial in
nature, including intrinsic rewards received from the job itself or from the physical or psychological
work environment (e.g., feeling successful or appreciated)


HRM is responsible for two broad areas of an organization: people-related issues and employment-related
legal compliance




Chapter 2: The Role of Human Resource Management in Business